Standard Bank Copper ETN · JSE:SBCOP
Standard Bank Copper ETN — Standard Bank Group — Investor Day (February 2023)
29 slides from Standard Bank Copper ETN's investor day presentation, February 2023
Slide 1: Global Markets Showcase
GLOBAL MARKETS SHOWCASE February 2023
Slide 2: Agenda
AGENDA Welcome Sarah Rivett-Carnac Global Markets in SBG context SBG Global Markets in Africa context Kenny Fihla Overview of Global Markets Guido Haller Client franchise - South Africa Alex Davidson Client franchise – Africa Regions Kayode Solola Market-Making Richard Pott Foreign Exchange Richard
Slide 3: Global Markets in SBG Context
GLOBAL MARKETS IN SBG CONTEXT
Slide 4: Global Markets in context
GLOBAL MARKETS IN CONTEXT Individuals Companies Global Markets R8.8bn Corporate and Revenue 1H22 High Net Worth Investment Banking Retail clients with Annual turnover¹: Africa Regions: >USD100m investable assets USD1m South Africa: >R1.5bn #1 Business and Ranking in FX - South Africa3 Affluent Comme
Slide 5: Global Markets in Context – Total Income by Segment
GLOBAL MARKETS IN CONTEXT – TOTAL INCOME BY SEGMENT Standard Bank Activities – Total CIB – Total income1,3 GM Segment – Total income income1,2 Rm (1H22) Rm (1H22) Rm (1H22) CIB Other GM Segment Other Trading revenue Other 2 905 22 704 8 772 62 132 22 704 8 772 39 428 13 932 5 867 1 Standard Bank Gro
Slide 6: Global Markets in Context – Total Income by Solution
GLOBAL MARKETS IN CONTEXT – TOTAL INCOME BY SOLUTION Standard Bank Activities – Total CIB – Total income1,3 GM Solution – Total income4 income1,2 Rm (1H22) Rm (1H22) Rm (1H22) CIB Other GM Solution Other GM Trading revenue Other 3 056 24 730 11 036 62 132 24 730 11 036 13 694 37 402 7 980 93% of SBG
Slide 7: Global Markets – An Unrivalled African Business
GLOBAL MARKETS – AN UNRIVALLED AFRICAN BUSINESS Largest Trading revenue and growing faster than our SA peers SBG Trading revenue, Rm Standard Bank SA peers1 2.8x SBG Trading Revenue vs. average of SA peers2 CAGR 2016-2019 2019-2021 SBG +3% +11% SA peers +5% +5% 10 988 10 731 10 799 12 075 13 874 14
Slide 8: SBG Global Markets in Africa Context
SBG GLOBAL MARKETS IN AFRICA CONTEXT
Slide 9: CIB - Global Markets Core to the CIB Franchise
CIB - GLOBAL MARKETS CORE TO THE CIB FRANCHISE 1 SCALE 2 DIVERSIFICATION 3 RISK MANAGEMENT 4 PEOPLE 9 STANDARD BANK GLOBAL MARKETS
Slide 10: The Global Markets Team
THE GLOBAL MARKETS TEAM Guido Alex Kayode Richard Richard Selvan Haller Davidson Solola Pott de Roos Kistnasamy Global Head, Global Client SA Africa Regions Market-Making Foreign Exchange Equities Markets 10 STANDARD BANK GLOBAL MARKETS
Slide 11: Overview of Global Markets
OVERVIEW OF GLOBAL MARKETS a § Standard Bank ITCANBE. ‘Also trading as Stanbie Bank
Slide 12: Positioned for Sustainable Growth Through Competitive Advantages
POSITIONED FOR SUSTAINABLE GROWTH THROUGH COMPETITIVE ADVANTAGES As the largest sub-Saharan African bank1, we have unmatched scale, deep diversification and are well connected across and beyond the continent. This supports our ability to capture commercial opportunity and manage risk ▪ #1 African ba
Slide 13: Global Markets – Diversified Trading Revenue Streams
GLOBAL MARKETS – DIVERSIFIED TRADING REVENUE STREAMS Client Revenue - % of GM Trading Diversified Product Mix Dominant Multi-country franchise Revenue1 GM Trading Revenue breakdown, Rm (1H22) GM Trading Revenue by Product, Rm (1H22) GM Trading Revenue by Country, Rm (1H22) Client (CIB) Foreign Excha
Slide 14: Global Markets – VaR and Stressed VaR as % of Revenue Decreased Since 2019
GLOBAL MARKETS – VAR AND STRESS VAR AS A % OF REVENUE HAS DECREASED SINCE 2019 Even though volatility has increased, we have increased revenues without taking on more risk VAR as % of Trading Revenue, Rm SVAR % (Avg) VAR % (Avg) 47% decrease in Avg. 4.05% SVAR over the period 3.36% 3.14% 0.34% 0.32%
Slide 15: Loss Days Significantly Below SA Peers
GLOBAL MARKETS – LOSS DAYS SIGNIFICANTLY BELOW SA PEERS SBG has maintained the lowest loss days over the past 4 years against peers # of Loss Days Standard Bank Group SA Peer Avg 55 76% 46 lower # of loss days 40 vs peer average over 38 38 the 5 year period1 # of Days 31 18 15 9 6 6 5 72% decline in
Slide 16: Global Markets – Strong Growth Across Both Regions
GLOBAL MARKETS – STRONG GROWTH ACROSS BOTH REGIONS GM Trading Revenue contribution by region GM Trading Revenue, Rm GM Trading Revenue CAGR (1H19 – 1H22) Africa Regions South Africa Covid-19 related 19% spike in Africa 3 year CAGR Regions in 1H20 7 980 7 066 6 193 6 852 13% 5 756 Africa Regions 5 25
Slide 17: Global Markets – Client-Driven Franchise
GLOBAL MARKETS – CLIENT-DRIVEN FRANCHISE GM Client Trading Revenue as a percentage of GM Trading Revenue has grown GM Trading Revenue, Rm Client revenue Market-Making Client revenue as % of GM Trading revenue 7 980 24% Client revenue 7 066 3 year CAGR 6 852 6 193 5 756 5 253 4 705 4% 6 468 4 905 5 1
Slide 18: Client Franchise – South Africa and Africa Regions
CLIENT FRANCHISE – SOUTH AFRICA AND AFRICA REGIONS
Slide 19: Our Client Franchise – South Africa
OUR CLIENT FRANCHISE – SOUTH AFRICA Overview Key metrics Client Trading Revenue ▪ Over 100 GM client-facing staff Sector, Rm (1H22) Product, Rm (1H22) 1 Scale ▪ Working in 5 regional dealing rooms Corporates CHNW FX Equities ▪ Covering >150k clients within SA NBFI FI FIC1 Commodities BCC Sovereign ▪
Slide 20: Our Client Franchise – Africa Regions
OUR CLIENT FRANCHISE – AFRICA REGIONS Key metrics and stats Sustainability and growth #18 +12k Client Trading Revenue Sector, Rm (1H22) ▪ International and onshore African footprint Presence in Transacting African countries1 Clients 1 Scale ▪ Market-Making rather than risk taking or agency type 7% C
Slide 21: Market-Making
MARKET-MAKING a § Standard Bank ITCANBE. ‘Also trading as Stanbie Bank
Slide 22: Market-Making – Leveraging the Network Effect
MARKET-MAKING – LEVERAGING THE NETWORK EFFECT Key differentiators of the SBG GM business Core to our competitiveness and innovation ▪ Geographic reach 1 Scale ▪ Diversified client franchise ▪ Broader product suite ▪ Originate to distribute FX model ▪ Internalisation benefits ▪ More sources of risk,
Slide 23: Foreign Exchange and Equities
FOREIGN EXCHANGE AND EQUITIES
Slide 24: Foreign Exchange – A Leading African Franchise
FOREIGN EXCHANGE – A LEADING AFRICAN FRANCHISE Continued investment in franchise and Market-Making best practice ensures we compound earnings through ongoing relevance to all market participants Overview of the Foreign Exchange business Sustainability and growth Trading Revenue by sector (1H22) 10%
Slide 25: Equities – Continues to Be a Growth Story
EQUITIES – CONTINUES TO BE A GROWTH STORY Overview of the Equities business Sustainability and growth Equities Revenue, Rm (1H22) Revenue Contribution ▪ Opportunity to leverage our large group retail and Client Market-Making corporate books (1H22) 1 Scale ▪ Leading Institutional Market Share Corpora
Slide 26: Conclusion
CONCLUSION a § Standard Bank ITCANBE. ‘Also trading as Stanbie Bank
Slide 27: To Conclude
TO CONCLUDE SCALE Responsible and sustainable growth DIVERSIFICATION through product innovation, investment in RISK MANAGEMENT people and a business that has our clients needs at its core PEOPLE 27 STANDARD BANK GLOBAL MARKETS
Slide 28: Appendix
APPENDIX a § Standard Bank ITCANBE. ‘Also trading as Stanbie Bank
Slide 29: VaR and SVaR
VAR and SVAR The group uses the historical VAR and SVAR approach to quantify market risk under normal and stressed conditions. For risk management purposes VAR is based on 251 days of unweighted recent historical data updated at least monthly, a holding period of one day and a confidence level of 95